Mortgage Market Overview, What Are the Alternatives?

As I have previously mentioned, the lending industry is going through a really challenging time. According to the ml-implode.com since late 2006 145 major US lenders have "imploded"

"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.

"Imploded" Lenders:
145. Castle Point Mortgage
144. Group One Lending
143. Allstate Home Loans / Allstate Funding
142. Home Loan Specialists (HLS)
141. Transnational Finance Wholesale
140. CIT Home Lending
139. Capital Six Funding
138. Mortgage Investors Group (MIG) - Wholesale
137. Amstar Mortgage Corp
136. Quality Home Loans
135. BNC Mortgage (Lehman)
134. Accredited Home Lenders
133. First National Bank of Arizona (FNBA) Wholesale, Correspondent
132. Chevy Chase Bank Correspondent
131. GreenPoint Mortgage - Capital One Wholesale
130. NovaStar (Wholesale), Homeview Lending
129. Quick Loan Funding
128. National City Home Equity
127. Calusa Investments
126. Mercantile Mortgage
125. First Magnus
124. First Indiana Wholesale
123. Pacific American Mortgage (PAMCO)
122. Spectrum Financial Group - Wholesale
121. Lexington Lending
120. Express Capital Lending
119. Deutsche Bank Correspondent Lending Group (CLG)
118. MLSG
117. Trump Mortgage
116. HomeBanc Mortgage Corporation
115. Mylor Financial
114. Aegis
113. Alternative Financing Corp (AFC) Wholesale
112. Winstar Mortgage
111. American Home Mortgage / American Brokers Conduit
110. Equity Funding Group
109. Sunset Mortgage
108. Fieldstone Mortgage Company
107. Nations Home Lending
106. Wells Fargo Alternative Lending Wholesale
105. Entrust Mortgage
104. Alera Financial (Wholesale)
103. Flick Mortgage/Mortgage Simple
102. Alliance Bancorp
101. Choice Capital Funding
100. Premier Mortgage Funding
99. Stone Creek Funding
98. FlexPoint Funding (Wholesale & Retail)
97. Starpointe Mortgage
96. Unlimited Loan Resources (ULR)
95. Freestand Financial
94. Steward Financial
93. Wells Fargo (Correspondent)
92. Bridge Capital Corporation
91. Altivus Financial
90. ACT Mortgage
89. Alliance Mortgage Banking Corp (AMBC)
88. Concord Mortgage Wholesale
87. Heartwell Mortgage
86. Oak Street Mortgage
85. The Mortgage Warehouse
84. First Street Financial
83. Right-Away Mortgage
82. Heritage Plaza Mortgage
81. Horizon Bank Wholesale Lending Group
80. Lancaster Mortgage Bank (LMB)
79. Bryco (Wholesale)
78. No Red Tape Mortgage
77. The Lending Group (TLG)
76. Pro 30 Funding
75. NetBank Funding
74. Columbia Home Loans, LLC
73. Mortgage Tree Lending
72. Homeland Capital Group
71. Nation One Mortgage
70. Dana Capital Group
69. Millenium Funding Group
68. MILA
67. Home Equity of America
66. Opteum (Wholesale, Conduit)
65. Innovative Mortgage Capital
64. Home Capital, Inc.
63. Home 123 Mortgage
62. Homefield Financial
61. First Horizon (Subprime)
60. Platinum Capital Group
59. First Source Funding Group (FSFG)
58. Alterna Mortgage
57. Solutions Funding
56. People's Mortgage
55. LowerMyPayment.com
54. Zone Funding
53. First Consolidated (Subprime Wholesale)
52. EquiFirst
51. SouthStar Funding
50. Warehouse USA
49. H&R Block Mortgage
48. Madison Equity Loans
47. HSBC Mortgage Services (correspondent div.)
46. Sunset Direct Lending
45. Kellner Mortgage Investments
44. LoanCity
43. CoreStar Financial Group
42. Ameriquest, ACC Wholesale
41. Investaid Corp.
40. People's Choice Financial Corp.
39. Master Financial
38. Maribella Mortgage
37. FMF Capital LLC
36. New Century Financial Corp.
35. Wachovia Mortgage (Correspondent div.)
34. Ameritrust Mortgage Company (Subprime Wholesale)
33. Trojan Lending (Wholesale)
32. Fremont General Corporation
31. DomesticBank (Wholesale Lending Division)
30. Franklin Financial (Wholesale Operations)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ResMAE Mortgage Corporation
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial


Ailing lenders haven't shut down, but they're significantly scaling back or are (or recently have been) in manifest financial, legal, or operational distress. Unfortunately, most of the industry now falls under this description, so we are forced to reserve this list for the more glaring cases or those which we happen to have more specific info about.

Ailing/Watch List Lenders:
13. Secured Bankers Mortgage Company (SBMC)
12. Impac Lending Group (Wholesale)
11. Mortgage Store Financial
10. Delta Financial Corp
9. Countrywide Financial
8. Meridias Capital
7. Option One
6. All Fund Mortgage
5. Ocwen Loan Servicing
4. Doral Financial Corp.
3. Evergreen Investment/Carnation Bank
2. Coast Financial Holdings, Inc.
1. Residential Capital, LLC*


Recently, residential market is experiencing a deficit of money. The lenders have been tighting up their guidelines in order to sell their loans on secondary market. Now, borrowers have to have higher credit score and/or bigger down payment in order to qualify for a mortgage.
This doesn't help the deflationary housing market. In this environment alternative money sources become more viable to the transaction. Molot, Inc. is an active participant in this market and if you are having problems with conventional financing on either buyer or seller side, do not hesitate consulting with us.

Lease Purchase AKA Rent to Own is another creative way to purchase a property

Are you in the market to purchase home? Bad credit can cause some troubling headaches throughout the entire lending process. Lease purchase is a great solution in your situation, especially, if you don't have significant savings. This technique will let you get into the property right away with reasonable contribution. An experienced investor should be able to structure the deal so that you can buy out the property you are leasing in 6-24 month.

This is what we do for our buyers who are on Lease Purchase program. First of all, an action plan is created for them. There are several points that have to be considered: those are credit, income and asset information.
Usually income is most important matter that we look at. We never put a buyer into the property if he or she cannot afford a monthly payment.
Derogatory items on the credit are often overlooked as long as buyer has a reasonable explanation like health problems, prior loss of job, divorce etc.
Savings is another important qualifying factor. If there is not enough money saved up by the candidate then we will structure a deal in a way where buyer will have enough to purchase the property by the end of the lease term. It can be done in several ways, such as sweat equity, credit back from each monthly payment and seller’s contributions towards purchase.
Before buyers get into the property, they know exactly what has to be done in order for them to purchase it by the end of the term. Everything is negotiated and locked upfront into contract: purchase price, monthly payment, credits, seller contributions, time frame and deposits.

Most our properties are available for Lease Purchase program please visit http://www.molotinc.com/Inventory/Inventory.html to see if you are interested in any of our properties. Keep in mind that the terms are negotiable.

Sell real estate quickly with Seller Financing aka Owner Financing

An alternative form of financing is owner financing aka seller financing. This means the owner participates in financing the buyer’s purchase of the property, either in whole or in part. There are several reasons an owner would provide financing:

· To assist buyers to purchase the home, particularly when real estate market is down

· To collect the interest — rather than commercial lenders being the beneficiary and get higher return on investment

· To bring the real estate up to marketable condition, such as a fixer-upper

How buyers will benefit of owner financing; an arrangement such as
this could give them the home at a good market price, perhaps with
little down, at a lower interest rate than with conventional financing.


How Sellers will benefit of owner financing; the sellers sell their homes at market value much faster and get an excellent return on their money.

Look at our inventory most of ours properties have a Seller Financing option.

Call us for details (407) 375-6052

Down Payment Assistance

Down Payment assistance program can benefit both sellers and buyers.

Advantage to the sellers:

It helps sellers to attract more potential buyers and sell their homes faster. The average time to sell a residential property in today’s market is approximately 6-8 month. By using this program sellers will be able to attract more buyers just because more buyers will be able to get financing.

Advantage to the buyers:

It helps to qualify for the mortgage to those buyers who don't have enough money for the down payment and closing cost. Also, it helps buyers to get better terms on the mortgage and substantially lower monthly payment.

Example:

$200,000 – Market Value

$175,000 – Seller needs to net from the sale of the property

$25,000 – Amount of equity to work with.

Buyer is approved for $180,000 loan amount form ABC Mortgage Company. Buyer needs $20,000 for down payment and $5,000 for closing cost.

Down Payment Assistance Company will wire a private contribution of $25,000 to the buyer checking account before closing for down payment and closing cost. Down Payment Assistance Company's fee is 10% of the contribution or $1,000, whichever is greater. In this case, the fee is $2,500 because it's based on a $25,000 contribution.

Down Payment Assistance Company gets paid back through the settlement statement as a payoff to their collections account for the full amount of our fee ($28,000). Down Payment Assistance Company is not a mortgage or a loan company; there is neither shady side deal, nor any silent second. There are no amortizations tables or terms to use the program; it's just a service with a fee. The seller does not net the $28,000, therefore there is no capital gain on that money, and no 1099 are issued. This is a completely legal and legitimate transaction, where everything is disclosed. Parties are totally independent in the transaction, which are HUD and RESPA compliant. It’s a truly win-win for everyone!

Most properties in our inventory are eligible for this program. Please visit http://molotinc.com/Inventory/Inventory.html to check our inventory.

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